Unlevered Return
Content
Definition
Unlevered Return is the return on an investment without taking into account the effect of financial leverage, providing a clearer picture of the investment’s performance.
Usage and Context
Unlevered return shows an investment`s performance without the effects of financial leverage.
Frequently asked questions
- What is unlevered return on investment? Unlevered return on investment shows the return without considering debt, highlighting pure equity returns.
- What is the difference between unlevered and levered return? Unlevered return measures return without considering debt, while levered return accounts for the effects of debt on the investment`s return.
- What does "unlevered" mean in finance? In finance, "unlevered" means a company has no debt, and its performance is assessed without the effect of borrowed funds.
Benefits
Unlevered return assesses investment performance, excluding the effects of financial leverage.
Conclusion
Unlevered return assesses investment performance without considering the effects of financial leverage.
